JPMorgan Predicts $146,000 Bitcoin – Ethereum Fair Value At $1,500
Banking giant JPMorgan has is sticking to its prediction that the value of Bitcoin could go beyond the $100k mark to end the year at $146,000, but issued a warning that the leading crypto is volatile and asset could end up down to $35,000. At the same time the analyst of the bank said Ethereum’s fair market value now would be $1,500.
Bitcoin at $146,000 by 2022
According to JPMorgan analysts, led by Nikolaos Panigirtzoglou, the Bitcoin price target of $100k or above would be visible if volatility of the asset declines.
“This challenges the idea that a price target of $100,000 or above, which appears to be the current consensus for 2022, is a sustainable bitcoin target in the absence of a significant decline in bitcoin volatility.”
Bitcoin would only be able to achieve its goal of breaching $100k if its volatility falls sharply to allow risk-averse investors to feel comfortable enough to add it to their portfolio citing the price crash of May as one of the reasons institutional investors have remained on the fence with the asset, the analysts said.
Many market analysts and traders have predicted that the value of Bitcoin could go as high as $100,000 before the end of the year citing the rising inflation, which is at a 13-year high in the United States. This fear has led to the influx of many institutional investors who have been actively looking for a means to hedge against this rising tide.
While the choice of these investors in the past would have been gold, the rise of millennials in the investment space could lead to the “crowding out of gold as an ‘alternative’ currency” thereby giving room for the growth of BTC in the long run.
The bank, however, warned that if the volatile nature of the asset were to kick in again, we could see the value of the asset crumble to around $30,000 again as was seen earlier in the year but they maintained that “there is little doubt that cryptocurrencies and digital assets more broadly are an emerging asset class and thus on a multi-year structural uptrend.”
Ethereum Should Be At $1,500
Ethereum’s value has hit a recent all-time high above $4,600. Analysts at JPMorgan, however believe that the second largest crypto asset is greatly over-valued. Although the altcoin has made great strides in utility recently, the analysts do not believe that the coin is fairly valued. They believed that the fair price of the digital asset is in fact much lower than its current value.
Ethereum has been one of the most successful digital assets in the market. This has been due to the growth of use cases such as decentralized finance and NFTs. Ethereum remains the default blockchain for investors to access these services and this has made its native token, ETH, rally over the months. Despite its use cases, JPMorgan analysts have posited that the coin is overvalued.
According to Panigirzoglou, ETH was wildly overvalued despite its utility in the market. This comes as a surprise to the market as ETH has proven to have more applications than its counterpart bitcoin.
The analyst said that ETH’s value was actually much lower than it’s worth now. He put it at 67% less valuable than the current price of the asset, which puts ETH at levels not seen since the beginning of the year. The analysts put forward that they expect the digital asset to begin a downtrend that will put it at 67% less than its current value, which is $1,500.
Growing competition in the space in which Ethereum operates is the reason for this. “In turn, this creates the risk that the substantial increase in the ethereum network activity over the coming years embedded in the current price of $4,100 might not materialize,” Panigirzoglou said.
